The Financial Sector Conduct Authority has imposed penalties exceeding R2-billion on Banxso, alongside lengthy debarments for its directors. Following extensive investigations into misconduct, the regulator aims to restore integrity in the financial sector while assisting law enforcement with further investigations. After a lengthy investigation spanning more than a year, the Financial Sector Conduct Authority (FSCA) finally slapped trading platform Banxso with penalties of more than R2-billion and fined its directors to the tune of a collective R35-million.
Hundreds, possibly thousands, of people lost huge sums of money after “investing” in Banxso. The online trading company’s trading licence remains suspended. A further R16-million has been imposed on Banxso for other contraventions.
In addition to the above fines, the FSCA has fined director Manuel de Andrade R20-million, while two key individuals – Mohammed Bux and Henry James Simpson – have been fined R10-million and R5-million, respectively. Sekler, Sneider, De Andrade and Bux have all been debarred for a period of 30 years each, while Simpson has been debarred for a period of 10 years. The 30-year debarment is the maximum debarment period ever imposed by the FSCA on an adviser.
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Other advisers that have been slapped with 30-year debarments in the last year have been Craig Warriner and SC Jansen van Rensburg. The FSCA’s extensive investigation into Banxso over the course of more than a year found Banxso and its key persons,inter alia, misappropriated client funds, provided false and/or misleading information to clients and to the FSCA, promised clients unrealistic returns and failed to act in the best interests of its clients. The FSCA concluded that Banxso and its key persons materially contravened various provisions of the:
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